Like our usual banks, crypto exchanges offer similar services, such as monetary transactions and the keeping of money and other valuable items. However, they are novel, and due to this fact, they can be pretty risky at times. They could be hideouts for thieves who want to scam you and steal your money.
Because of all these challenges, this article will simply discuss various things you should look out for when choosing a crypto exchange.
But before we go into that, let’s take a brief look at what Cryptocurrency Exchange Platforms are and How they work.
What Is a cryptocurrency exchange platform?
A crypto exchange is simply a platform where you can buy and sell crypto using Fiat currencies like the Naira or other cryptocurrencies. They offer many services, such as trading services, market analysis, and even storage of cryptocurrencies through crypto wallets.
They are of great benefit because they offer people the option to buy crypto instead of spending a lot of money and time on mining.
How do crypto exchange platforms work?
These platforms help you to buy, sell and store crypto. They also have a vast amount of tools you can make use of at your disposal.
These exchanges can be centralized (exchanges operated by a single entity and require users to deposit their assets onto the exchange to trade) or decentralized (exchanges powered by blockchain technology and allow users to trade directly with one another without the need for a central authority).
These exchanges work by matching buyers with sellers.
Just like a traditional bank account, you must register before trading on the platform. Then you must complete the KYC (Know-Your-Customer) process so that your account can be opened and be accessible for the transfer of funds (fiat or digital currency) which you can then use to make purchases on the platform.
It is important to note that the process may vary slightly from one exchange to another. Some exchanges may have additional features or offer different methods of buying and selling cryptocurrencies. So it is always a good idea to familiarize yourself with the specific process of each exchange before using it.
Choosing your crypto exchange: what to watch out for!
Now, these are some things you want to watch out for when choosing a crypto exchange as cryptocurrencies are often volatile and some crypto exchanges to date have succumbed to hacking, so it is highly important to consider a variety of factors when selecting an exchange, including but not limited to the following:
- Jurisdiction: Make sure the crypto exchange is operating in a jurisdiction that is reputable and has well-defined regulations for cryptocurrency exchanges.
- Security: When opting out of these exchanges, look for ones that have a strong track record of security and use measures such as cold storage for storing cryptocurrencies. There are many examples of such exchanges like Binance, Lopeer, Coinbase, etc.
- Fees: You must compare the fees charged by different exchanges for buying and selling cryptocurrencies on their platform. Go for the best options and don’t go for platforms that offer too good to be true offers, so that you don’t get scammed.
- Reputation: Read reviews and do your research to get an idea of the reputation of the exchange. For example, our platform, Lopeer has a very good reputation in the market and even the reviews and ratings on the Google play store prove it.
- Payment methods: Check what payment methods are accepted by the exchange and whether they are convenient for you. Lopeer is a good example with a variety of payment options.
- Ease of use: Consider the user interface and overall user experience of the exchange. A platform that is easy to navigate and use can make the process of buying and selling assets much smoother. Lopeer app has a very good user interface and is easy to use, making your crypto transactions easier and faster, right from the comfort of your home.
- Trading volume: Choose an exchange with high trading volume to ensure that you will be able to buy or sell your assets quickly and at a good price.
- Savings and Staking Option: Check for this feature so that you can save crypto for both the short and long term and make profits from the interests that accompany it. There are so many platforms out there that support crypto savings, but we recommend you try out the Lopeer savings feature by downloading the Lopeer App. Unlike other platforms, Looper’s top priority is the security of the user’s assets, and you can be sure that your assets are in safe hands.
- Supported cryptocurrencies: Make sure the exchange supports the cryptocurrencies that you want to trade. Options like Lopeer, Binance, Kucoin, Coinbase, etc, support a vast variety of cryptos such as Bitcoin, Ethereum, Tether USD, Dogecoin, Litecoin, and so on.
- Customer support: Look for exchanges that have responsive and helpful customer support in case you have any issues. A good example is Lopeer which has a very good customer support system through its various mediums like in-app live chat, Facebook, Twitter, and Telegram. Other platforms which offer the same feature are Binance, Coinbase, Paxful, etc.
- Order types: Consider the types of orders offered by the exchange, including limit orders, market orders, and stop-loss orders.
- Integration with other platforms: If you use other platforms for trading or managing your assets, look for an exchange that integrates with these platforms.
- Community and resources: Consider the size and activity of the exchange’s community, as well as the availability of educational resources and other support.
- Mobile app: If you plan to trade on the go, look for an exchange that offers a mobile app. Good examples of platforms that have a mobile app are Coinbase, Lopeer, Binance, Quidax, Kucoin, etc.
- Advanced trading features: For experienced traders, consider an exchange that offers advanced trading features such as margin trading and futures contracts.
- Liquidity: Choose an exchange with high liquidity to ensure that you can buy and sell assets easily and at a good price.
- Insurance: Some exchanges offer insurance for assets held on the platform, which can provide an extra layer of protection against losses.
- Verification process: Some exchanges require users to undergo a verification process to trade or withdraw assets. Consider the level of verification required and the time it takes to complete the process.
- Geographical restrictions: Some exchanges may not be available in certain countries or regions. Check if the exchange you are considering is available in your location. Platforms like Lopeer, Binance, Paxful, etc, often have a large geographical coverage and are very good options for Nigerians, Africans, and other nations.
- On/Off Ramp support: On/Off ramp support refers to the conversion of Fiat (local currency) into Cryptocurrencies and vice versa. One important feature when choosing an exchange is the ease of conversion from crypto to your local currency and local currency to crypto assets; this will enable you to quickly have access to your money, especially during emergencies. Fortunately, Lopeer has a P2P exchange that allows you to quickly trade crypto with other traders and there is also an option for a direct bank deposit via P2P merchants for users in Nigeria and some other countries.
A platform with almost all these features is a good go, and a good example of such a platform is Lopeer.
Lopeer is an all-in-one crypto platform that enables you to spend, save and invest in crypto and other financial assets. The Lopeer app is very unique because it makes your crypto transactions faster and it enables you to trade cryptos offline without the need for an exchange.
It is also essential to choose the platform that best suits you. You can review the article again if you want to compare your crypto exchange options. Remember to be careful out there and don’t go for too-good-to-be-true crypto offers so you don’t get scammed.
Thanks for reading and don’t forget to share this article with other fellow crypto enthusiasts.